Mid-August has seen persistent high temperatures sweeping across the whole country, creating a strong atmosphere of the traditional summer off-season in the chemical industry. Operating rates of end manufacturing sectors have generally slowed down, and China’s overall silica market has remained volatile and consolidated without widespread price hikes or sharp slumps. Structural market discrepancies remain the core operating feature at present. Conventional precipitated silica matched for traditional tire and rubber production is weighed down by sluggish end consumption, with slower product circulation and expanding bargaining room, leading to an overall weak market performance. By contrast, high-purity fumed silica applied in photovoltaic encapsulation, electronic component potting, lithium battery separator coating, high-end daily cosmetics and makeup maintains steady demand. Coupled with the steady delivery of overseas export orders, its spot supply stays tight and prices hold firm, barely affected by the off-season downturn in high-end segmented tracks. Multiple factors intertwine, including mild fluctuations in upstream raw materials, the ebb and flow between new and traditional domestic demands, mismatched supply and demand at home and abroad, as well as differentiated production scheduling among enterprises, jointly forming the current off-season landscape of silica: low-end products face downward pressure while high-end variants resist price declines.

　　Upstream raw material prices fluctuate slightly with feeble overall cost support, and regional price gaps remain notable. Sodium silicate, the core raw material for precipitated silica, enjoys ample nationwide supply with pronounced inventory accumulation among domestic manufacturers. To accelerate inventory turnover and recover working capital, most producers have moderately lowered ex-factory quotations, triggering a mild overall price drop that directly caps the production cost of precipitated silica. Only certain production zones in Northwest China witness limited price declines due to transportation controls on quartz sand and rising long-distance logistics costs, forming obvious price gaps with major production hubs in East and South China. Regional divergence continues in the sulfuric acid market. Downstream fertilizer, coating and metallurgical facilities in chemical parks across East and South China operate at reduced loads, curbing sulfuric acid consumption and exacerbating inventory backlogs alongside gradual price falls. North and Northwest China barely shore up prices relying on local industrial and mining rigid demand yet cannot reverse the overall downward trend. Amid the weakening raw material market, conventional precipitated silica loses its cost buffer, prompting sellers to offer discounts for shipments. Nevertheless, the special production process of fumed silica renders it barely susceptible to raw material swings; its price trend is entirely governed by supply and demand, largely insulated from off-season influences.

　　Production sentiment on the supply side turns prudent. Leading enterprises optimize product structures to control inventory, while small and medium manufacturers show strong willingness to cut output and avoid risks. Following gradual inventory accumulation in the early stage, the whole industry adopts a cautious production mindset, with the comprehensive domestic operating rate of silica falling to 75%–80%. Large-scale leading manufacturers abandon blind full-capacity production. They flexibly adjust production line capacity in line with delivery schedules for long-term contracts, slash output of generic industrial precipitated silica, and concentrate capacity on high-dispersity tire-specific precipitated silica and various grades of fumed silica. This strategy optimizes inventory composition and prevents operational losses stemming from price drops of low-end products. Small and medium manufacturers face mounting survival pressure amid continuously squeezed slim profit margins, slack end purchasing, routine environmental inspections and periodic equipment maintenance. Most actively shorten production hours, and some small processing plants suspend production temporarily for rest and overhaul, markedly slowing the supply growth of low-grade silica. The launch of new capacity keeps slowing, with no large-scale newly built production lines put into operation to disrupt the existing supply-demand balance.

　　Clear stratification exists in inventory levels: generic industrial precipitated silica boasts abundant early reserves and sufficient spot goods with flexible bargaining space for bulk purchases; prolonged consumption has kept inventories of high-dispersity precipitated silica and various high-purity fumed silica at low levels, slightly extending delivery cycles; affected by unstable international shipping timetables and production scheduling adjustments of overseas factories, imported premium fumed silica arrives in limited monthly volumes, sustaining a tight supply-demand balance. As of August 12, mainstream tax-inclusive domestic reference quotations are listed below: general rubber-reinforcing precipitated silica: 6,400–7,500 RMB/ton; mid-range domestic fumed silica: 20–23.7 RMB/kg; premium fumed silica dedicated to photovoltaics and electronic silicone rubber: 25–28.6 RMB/kg; imported ultra-high-purity fumed silica: 28.4–38.8 RMB/kg, featuring a clear and orderly price hierarchy.

　　Domestic demand is sharply polarized. The traditional rubber industry is mired in the off-season, while new energy and new material sectors enjoy steady growth against the trend. As the largest traditional consumer of silica, the tire industry is severely impacted by the summer slump in automobile consumption. Domestic vehicle manufacturers cut production plans, tire enterprises grapple with mounting finished inventory and cash flow pressure, and adopt increasingly conservative procurement strategies limited to small on-demand restocking for daily production. Bulk stockpiling has vanished, directly resulting in sluggish transactions for conventional precipitated silica. In the long run, automobile lightweighting and low-carbon development represent an irreversible industry trend. Rising penetration of green tires steadily drives demand for high-dispersity silica as a replacement for carbon black, underpinning the price floor of high-grade precipitated silica and avoiding drastic price declines.

　　Emerging industries serve as the core growth engine for high-end silica. Robust mass production of phenyl silicone rubber, transparent electronic potting adhesives and modified silicone products widely applied in optoelectronics and electronic component packaging fuels steady consumption of fumed silica, which is irreplaceable for reinforcement, anti-yellowing, temperature resistance and anti-settling performance. Prosperous production and sales across the photovoltaic industry push up demand for module sealants and junction box thermal conductive potting adhesives, continuously consuming ultra-fine fumed silica. The lithium battery sector undergoes sustained capacity expansion, with year-on-year demand growth exceeding 45% for silica used in separator coating, making it the fastest-growing segmented field. In addition, steady niche rigid demand from industrial anti-corrosion coatings, printing inks, food anti-caking agents, pet feed additives, skincare and makeup powder raw materials generates continuous scattered orders, filling the demand gap caused by the downturn of traditional industries and preventing an overall market slump.

　　Overseas exports act as a vital buffer easing domestic off-season pressure, with steadily rising overseas orders effectively digesting surplus domestic capacity. Recently, purchasing demand has rebounded continuously from rubber processing bases in Southeast Asia, photovoltaic supporting projects in the Middle East, as well as high-end coating and daily chemical enterprises across Europe. Boasting outstanding cost-performance advantages, Chinese silica has secured abundant export orders. Conventional precipitated silica registers the most notable export growth, absorbing massive idle low-end domestic capacity and effectively curbing vicious price competition in the low-end market. Exports of mid-range fumed silica also climb steadily, driven by demand expansion from the overseas new energy industry, which further tightens domestic spot inventories. Complementary domestic and overseas demand enables the silica industry to weather the traditional summer off-season smoothly.

　　Comprehensive calculations and analysis by multiple chemical commodity monitoring institutions indicate that the divergent market pattern of silica will persist in late August. Conventional precipitated silica will remain under mild downward pressure suppressed by the tire off-season with high flexibility in negotiation terms. Backed by steady domestic demand from photovoltaics, lithium batteries and organosilicon plus robust overseas exports alongside tight supply, premium fumed silica will maintain stable and firm prices. Temperatures will drop in September, ushering in the traditional autumn peak season for domestic tires, architectural coatings and textile auxiliaries with concentrated release of downstream purchasing demand. Coupled with sustained upbeat export orders, the entire silica market is expected to embrace an overall recovery and upturn.

　　Anhui IOTA is deeply engaged in the full industrial chain of organosilicon. We supply precipitated silica with varied specific surface areas and a complete portfolio of high-purity fumed silica products, widely applicable to tire rubber, silicone rubber products, photovoltaic sealing and bonding, lithium battery separator coating, industrial coatings, daily cosmetics, food additives and other diversified scenarios. Customized product indicators, sample delivery, fast spot shipments for small and bulk orders are all available. Our professional technical team provides one-stop technical services including filler ratio adjustment, formula optimization and production application process guidance, while undertaking procurement for domestic manufacturers and overseas export supply business.